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| Punjab gangs up against J&K industry | | Badal govt to move SC for scraping tax sops available to J&K | | Early Times Reporter
Jammu | Apr 23
ET Special
As if the deadly blow dealt by withdrawal of central excise incentives was not enough to crush industry sector in Jammu and Kashmir that another trouble is in the offing.
In a classic case of owner’s pride and neighbour’s envy, the adjoining state is all set to take the Central Government and Jammu and Kashmir to the Supreme Court for the tax sops available to this state which are not available to Punjab. Sources said, a decision to this effect has been cleared by the Punjab Chief Minister Prakash Singh Badal. The appeals decided to be filed before the Supreme Court seek to annul the tax sops offered to the industry sector in Jammu and Kashmir.
Punjab government has accused the Central Government of adopting a discriminatory attitude as it was denied the tax sops offered to the industries in Jammu and Kashmir, Himachal Pradesh and Uttranchal. The Punjab state wants the Central Government compensate it by Rs 10,000 Crore which it could have made if the tax incentives available to Jammu and Kashmir were also available there.
Not only the compensation claim of Rs 10,000 Crore, the Punjab Government wants the Central Government to scrap the tax incentives being offered to Jammu and Kashmir.
Sources said that the Punjab Government has engaged senior Supreme Court lawyer KK Venugopal to move apex court seeking compensation of over Rs 10,000 crore and quashing of all tax benefits given to Jammu and Kashmir and two other hill states - Himachal Pradesh and Uttaranchal. Two petitions are being filed before the Supreme Court as one to seek damages and the other to seek annulment of tax holidays granted to Himachal Pradesh, Uttaranchal and Jammu and Kashmir.
Meanwhile, resentment is brewing up among the industrialists and businessmen in Jammu and Kashmir over the silence of central government on incentive withdrawal. Ahead of Prime Minister’s visit to Jammu, the Chamber of Commerce and Industry has reiterated demand for revoking excise incentive withdrawal order.
While highlighting the disadvantages of withdrawal of incentives Ram Sahai President of Chamber of Commerce and Industry said that the main objective to provide this package was for the Industrial growth in the militancy ravaged state of Jammu and Kashmir which is also having disadvantages of its location and inadequate market. The major attraction of the package was the reimbursement of the Central Excise to the units due to which some investments has been made in our state through some leading industrial house of the country which also provided employment to about 69000 unemployed youths of the state in 1287 industrial houses.
He further said that keeping in view the withdrawal of this benefit a large number of units shall be able to compete with such units outside the state as their cost of production will be much higher here. The Chamber further regret to mention that the package of the incentives which was granted for a period of ten years and has been changed after the lapse of five and half year causing aspersion on the credibility of the Central Excise. |
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